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Problem 2-19 Consider the three stocks in the following table. Prepresents price at time t and Q represents shares outstanding at time i Stock C
Problem 2-19 Consider the three stocks in the following table. Prepresents price at time t and Q represents shares outstanding at time i Stock C splits two-for-one in the last period. A B C Pe 94 54 108 00 100 200 200 P1 99 49 118 01 100 200 200 P2 99 49 59 D2 100 200 400 a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t = 0 to 1 = 1). (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Rate of return % b. What will be the divisor for the price-weighted index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (t = 1 tot= 2). Rate of return %
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